Budget ’25: A Credible, Growth-Oriented Path To Surplus

"BusinessNZ welcomes the Government’s 2025 Budget as a credible and growth-oriented package that supports economic growth while reinforcing a pathway back to fiscal sustainability.

Chief Executive Katherine Rich says this Budget rightly focuses on economic growth, productivity and investment.

"Overall the 2025 Budget outlines a credible path back to surplus, even as net debt is projected to rise in the short term. Treasury has made it clear that risks to the global and domestic outlook remain, and this Budget’s focus on discipline - while still prioritising growth is appropriate and timely.

"The introduction of the Investment Boost, which allows businesses to immediately deduct 20 percent of the cost of new plant, machinery, equipment, and even commercial buildings - is a significant and forward-looking move that will incentivise capital upgrades and improve competitiveness.

"Likewise, the continuation of a 15 percent research and development tax incentive reinforces the importance of innovation for sustained economic growth.

"BusinessNZ Economists John Pask and Stephen Summers note the current environment remains tough for many businesses, but the 2025 Budget provides the policy settings to support future planning, particularly for larger and capital-intensive businesses.

"Increased investment in general infrastructure across health, regional development, and transport, including a $1 billion upgrade to hospitals and major new funding for rail and road recovery is welcome news. These investments contribute directly to the infrastructure pipeline that supports business logistics, workforce mobility, and long-term productivity." Rich says.

"It’s also encouraging to see investments in education and skills development, including further support for tertiary providers and targeted training initiatives. A strong education and skills pipeline is essential to lifting productivity, meeting future labour market needs, and ensuring that businesses can access the talent they require to grow.

"Targeted support for the primary sector, adjustments to thin capitalisation rules to encourage foreign investment, and funding to help start-ups through improved employee share scheme tax settings all show the Government’s willingness to back productive enterprise. We also welcome ongoing investment in trade access, and tourism recovery.

Rich says changes to KiwiSaver, including a gradual increase in contribution rates and a more sustainable approach to Government contributions, will have cost implications for employers, "However, the phased approach to changes will provide time to plan, and we recognise the need to ensure the long-term sustainability of New Zealand’s retirement savings system."

"BusinessNZ continues to support a broader review of national savings policy to ensure it is fit for the future."

BusinessNZ congratulates Finance Minister Hon. Nicola Willis on delivering a measured, business-aware Budget that responds to current challenges while laying the foundation for sustained economic growth and a stronger, more resilient New Zealand economy.

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